Summer 2014 Exam 3 ANSWERS Essay

Words: 1821
Pages: 8

Name:

Use the following information for the next two questions.
Napier Co. provided the following information on selected transactions during 2013:
Purchase of land by issuing bonds $500,000
Proceeds from issuing bonds 1,000,000
Purchases of inventory 1,900,000
Purchases of treasury stock 300,000
Loans made to affiliated corporations 700,000
Dividends paid to preferred stockholders 200,000
Proceeds from issuing preferred stock 800,000
Proceeds from sale of equipment 100,000

1. The net cash provided (used) by investing activities during 2013 is
a. $100,000.
b. $(600,000).
c. $(1,100,000).
d. $(2,500,000).
e. None of the above.

2. The net cash provided by financing activities during 2013 is
a. $1,100,000.
b. $1,300,000.
c.

Dividends for the year 2013 were $144,000. 2. During the year, equipment was sold for $180,000. This equipment cost $264,000 originally and had a book value of $216,000 at the time of sale. The loss on sale was incorrectly charged to cost of sales. 3. All depreciation expense is in the selling expense category.
The next five questions relate to a statement of cash flows (direct method) for the year ended December 31, 2013, for Harlan Mining Company.
12. The net cash provided by operating activities is
a. $306,000.
b. $216,000.
c. $180,000.
d. $150,000.
e. None of the above.

13. The net cash provided (used) by investing activities is
a. $(264,000).
b. $36,000.
c. $180,000.
d. $(216,000).
e. None of the above.
14. Under the direct method, the cash received from customers is
a. $6,408,000.
b. $6,192,000.
c. $6,300,000.
d.